EM2160 - Working the enquiry: partial closure notices: introduction

HMRC can complete the check of one or more discrete matters that are being enquired into, by giving the taxpayer a partial closure notice (PCN). Other matters may be settled by issuing further PCNs. The enquiry will be closed by giving the taxpayer a final closure notice (FCN), or when the enquiry is settled by contract. The statutory term ‘matter’ is only used in a PCN, see EM3831A.

The effect of a partial closure notice is to settle and provide finality to a particular matter or matters. A matter may be anything contained in a return, or required to be contained in a return, which can be settled discretely. HMRC policy is that PCNs should be used selectively rather than routinely, see CH279600.

Section 63 and Schedule 15 of Finance (No. 2) Act 2017 amended the following legislation to allow partial closure notices

• Taxes Management Act (TMA) 1970 section 28A for completion of an enquiry into a

• personal or trustee return under s9A TMA70
• Non-Resident Capital Gains Tax (NRCGT) return under s12ZM TMA70

• TMA70 section 28B for completion of an enquiry into a partnership return under s12AC TMA70
• Finance Act 1998 Schedule 18 paragraph 32 for completion of an enquiry into a company tax return under paragraph 24(1)

Before issuing a PCN, you must obtain the permission of an independent approving officer, unless the tribunal has directed HMRC to issue one, see EM2162. See CH279610 for guidance for approving officers.

EM3832 outlines the elements of a partial closure notice. EM3831A explains some of the terminology.

For more information about settling enquiries by Final Closure Notice (FCN) see EM3831, and for settlement by contract, see EM6001.